Can I 1099 an Employee?

The slightly nuanced answer is, sort of. Businesses hire 1099 employees, but they must classify them as independent contractors. Understand the terminology and distinctions before you try to send a Form 1099 to your W-2 employees.

 

Employees cannot send 1099 forms to their full- or part-time employees. The Internal Revenue Service outlines its strict employee classification guidelines. Employers withhold and deposit the income, Social Security, and Medicare taxes from employee wages. Employers do not withhold or pay taxes on their independent contractor payments. Misclassifying W-2 employees as 1099 employees and sending the wrong form may result in fines and other business consequences.

 

A 1099 employee must work independently and you cannot instruct them on how to do their job. Send workers 1099 forms if they work from a home office and you only hired them for a specific duration of time.

 

Generating and filing 1099 forms is something that we help many small businesses do with our Software Generated Forms and W-2/1099 Forms Filer software. Call our customer support team at (405) 340-0697 or download our free 1099-etc Demo today.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.